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Screenshot of a breaking news alert e-mail from Q2 2017
The Cyprus Securities and Exchange Commission (CySEC) has flashed its regulatory teeth at Atlas Capital Financial Services Ltd, the parent of Forex broker ACFX, operating via acfx.com.
The regulator today announces the suspension of the Cyprus Investment Firm (CIF) authorisation of Atlas Capital Financial Services Ltd, due to the company’s possible non-compliance at all times with the authorization and operating conditions.
The suspension comes several weeks after rumors were circulating (beginning with a Hong Kong based blog) that the company was having trouble with clients in China, who supposedly could not get their money back from ACFX. ACFX claimed at the time that they were being scammed by certain China based clients, who took advantage of incorrect swap rates the company had posted.
The regulator notes that the alleged violations may possibly endanger the company’s clients’ interests or the investor interests or generally the regular operation of the capital market.
ACFX has one month from the date of CySEC’s decision to take actions in order to comply with legal provisions.
In particular, the company is suspected of breaches of rules related to:
- continuity and regularity in the performance of investment services;
- effective procedures for identifying, managing, monitoring and reporting of the risks;
- adequate arrangements for safeguarding of clients funds.
While the company’s suspension is in force, ACFX:
- Cannot enter into a business relationship with any person and cannot take any new clients.
- Cannot receive, transmit or execute any orders from clients for buying any financial instruments.
- Cannot provide/perform any investment services in Cyprus or outside Cyprus (in member states and third countries).
- Cannot advertise itself as investment services provider and make advertising campaigns and announcements.
- Must upload on all of its websites that its CIF license has been suspended.
- Must, if existing clients so wish:
- Close all open positions in relation to clients’ contracts, or of its own, on their maturity date or on an earlier date if the client so wishes.
- Return to existing clients all of their funds and profits earned.
You can view the full announcement from CySEC by clicking here.